Acting responsibly to minimize risk
We maintain business relations with both public and private partners in numerous countries. This entails a need for strict compliance requirements. Continuously balancing out opportunities and risk is therefore one of our corporate principles. The aim of our risk and opportunity management strategy is to strike the optimum balance between growth and profit targets on the one hand, and the associated risks on the other. Our objective is to increase the value of Jenoptik in a systematic and sustainable way.
Our risk and compliance management plays a key role in our growth and change processes. Compliance with nationally and internationally recognized requirements is an inherent part of risk prevention and of the processes of our risk management system. Appropriate guidelines are compiled in a risk manual, based on the ISO 31000 standard.
In order to detect and eliminate deficiencies in our corporate activities at an early stage, we train our employees in compliance issues, screen our business partners and have introduced an internal monitoring system. Our monitoring system ensures that business transactions are conducted securely and that financial reporting meets all requirements.
In addition to the group regulations, information on compliant behavior is provided by the Jenoptik Code of Conduct, which summarizes the most important principles of conduct. It sets minimum standards, provides guidance on ethical and legal issues related to day-to-day work, creates transparency and helps master situations of conflict.
Global and reliable supplier management
Our individual customer solutions and global business relationships require our purchasing process to be organized on a customer-specific basis. Our technical standards are set so high that Jenoptik often has to rely on just a single supplier. As a consequence, there is a significant impact on our development and production processes if this supplier fails to deliver or cannot implement changes to specifications on time.
We therefore aim to have a standardized global procurement process. We want to monitor and control the entire route that our products and solutions take from supplier to final consumer. Partners who have proven themselves are classed as preferred suppliers who we involve in strategies and development projects at an early stage. This enables our suppliers to prepare themselves in good time in terms of requirements and delivery dates. Transactions that are subject to export controls are checked and processed in accordance with current regulations or, in the event of any possible embargo, are stopped completely.
Code of conduct for suppliers
The Code of Conduct for Suppliers, which Jenoptik revised in accordance with international standards such as the UN Global Compact, brings human rights, labor standards, and the fight against corruption into the supplier relationship. Since the beginning of 2014, it has been part of the general procurement conditions, committing suppliers to ensure, among other things, that no child labor has gone into their products and that a risk assessment was carried out with due diligence in the case of conflict minerals in accordance with the Dodd-Frank Act.